Final answer:
Sylvester can gift each of his three children up to $15,000 per year without incurring any gift tax, making the total amount he can give each year without tax consequences $45,000. The correct option is b.
Step-by-step explanation:
The subject of this question is Business, specifically related to tax law and gift taxes. Sylvester is looking to take advantage of the annual exclusion for gifts, which allows individuals to give a set amount to any number of people each year without it being taxable or using any of their unified credit.
As of the knowledge cutoff in 2023, the annual exclusion amount per recipient is $15,000.
To determine the total amount Sylvester can give his three children each year without creating a taxable event, you simply multiply the annual exclusion amount by the number of children. Therefore, $15,000 per child times three children equals a total of $45,000 per year ($15,000 x 3 = $45,000).
So the total amount Sylvester can gift to each of his three children yearly without making taxable gifts and without using any of his unified credit is $45,000. The correct option is b.